How to Get South Korean Market?
07 Jan 2016/CTW
FTA between China and South Korea has gone into effect since 20th December,2015, this means South Korea will gradually grant zero tariff treatment for 92% of taxed Chinese origin products in the next 20 years. Mr. CTW would like to take this opportunity to interpret the South Korean market.
According to data published by ACIMAC (Association of Italian Manufactures of Machinery and Equipment for Ceramics), Korean annual import volume for tiles had been stayed in the top 10 list of tile import countries from 2010 to 2014, respectively 59, 63, 61, 65 and 76 million square meters. It is easy to learn that South Korean import volumn is growing year by year.
1What kind of tiles do South Korean prefer?
Most of South Korean houses are around 60-70 square meters, so small size tiles such as 600X600mm and 300X600mm are best selling ones. Polished tile, porcelain tile and rustic tile are popular, and rustic tile is the most salable one.
South Korean end consumers prefer simple and elegant design tiles. Color of ash gray, light yellow, beige and brown are their first choices. For pattern of tiles, currently the selling of rustic tiles with sandstone and cement texture are very hot.
Generally speaking, their aesthetics are partial to quietly elegant tone, which is different from Chinese one. Sometimes products that South Korean need are very common to Chinese, some even don't sell well at all. And some patterns even gain market share for over 10 years in South Korea. It would be a problem for production schedule of companies if pattern of tile needed is those produced in over ten years ago.
Middle-end tiles are the mainstream ones for South Korean market. Large construction companies prefer tiles from premium brands in Foshan production base, while small and medium ones focus more on cost performance. Second-tier brands with lower price is Korean constructors' purchasing mainstream.
2How to sell tiles in South Korean?
South Korean decoration market, including engineering and home decoration channel, has characteristic of selling through engineering channel. This is different from Chinese ones.
In South Korea, commodity houses usually are refined decoration, concept of autonomous decoration is not popular in the public. Therefore, it is less retail volume in South Korean market. Usually builders and purchasing agents buy single type of tiles according to their needs for decoration. All in all, construction companies play a dominant role in the engineering construction. Large companies such as HYUNDAI Corporation, Samsung C&T Corporation and GS Engineering & Construction Corporation are outstanding representatives of Korean construction companies.
For companies have limited information for South Korean market, cooperating with trading companies or agents is short cut to build up business relation with engineering channels. It is impracticable for companies to negotiate with South Korean construction companies directly. Agents and trading companies are familiar with South Korean designers and construction companies. And it is much easier to get into market with their help.
3What is South Korean quality testing standard?
There is no special requirements on import tiles for the aspect of quality testing. Except a small percentage of the important projects, Inspection and Testing Report from factory can be applied to most of the engineering detection. However, despite there is no special requirements on quality testing, South Korean companies are strict to the tile quality. Once there is any problem, they reject order directly.
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This is the 210th issue
Editor: Yan
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